Leicestershire county councillors are to vote on whether to accept a 5.3 per cent increase in their basic pay.

As previously reported by the Mercury, County Hall has asked an independent panel to review levels of allowances received by the 55 politicians.

Allowances have been frozen since 2009 but the review comes at a time when the Conservative-led council has cut more than £200 million from its budgets in recent years and warned a further £40 million of savings will be needed due to austerity.

The panel has now made a proposal to increase the basic allowance from £10,152 a year to £10,691 and index-linking it to staff pay awards, meaning it would automatically increase on an annual basis.

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Special responsibility allowances - paid to councillors with extra roles such as leader or chairman of committees - will also increase annually.

The panel also wants each councillor to publish an annual report each June to show the public what they do to earn their allowances.

The panel did not favour a proposed 19.7 per cent increase outlined in a unpublished report seen by the Mercury.

Leicestershire County Council headquarters

The panel, made up of two former senior university staff and an ex council solicitor, has said the increase should not be backdated and should take effect from October 1.

It has said councillors now have increased workloads and an ‘enhanced community leadership role’.

Panel chairman Professor David Wilson, former De Montfort University vice-chancellor, said: “It was important to the panel that the allowances scheme ensures members’ accountability, recognises the financial pressures facing the council and provides reasonable recompense for the considerable time councillors commit to their role.

“Our recommendations acknowledge the increased pressure on members’ workload, resulting from their enhanced community leadership role, but are also mindful of the significant ongoing financial pressures on the council.

“The panel is also keen to ensure that councillors provide an account of their activity to their electorate, and this is why we are recommending that councillors submit an annual report to be published on the county council’s website.

“The panel will be reviewing the publication of annual reports when it next meets in the autumn of 2018.”

The panel recommendations include a new £2,000 special responsibility allowance (SRA) for deputy chairmen of five committees.

Group whips, currently unpaid, would also get allowances to compensate for the scrapping of political assistants roles. These would total £3,245 a year.

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The changes will increase the annual bill for politicians by some £44,000 but the council says other reductions to “the cost of democracy” will save £235,000 annually.

The changes, which include reducing the number of cabinet posts, deleting political assistant roles, pension changes, ending highway forums, plus the panel’s proposed changes, will save the council £235,000 a year.

The council’s Constitution Committee will consider the proposals at a meeting on Friday. A final decision will be taken at a full county council meeting on September 27.